National Republican., 1887-10-10

the public credit" The following is an ex-
tract from It:
But none of said interest bearing obligations
not already due shall be redeemed or paid ',-
fore maturity unless at such time United States
notes are convertible into coin vt the option of
the holder, or unless at such time bonds OF the
United States bearing lower rate of interest
than the bonds g. be redeemed can be sold ut
par in coln.-United States Statutes at Large,
vol. l6, r. ~
On the Sd of March, 1881, Congress
passed the refundlng act, the second sec
tlon Of which reads as follows:
That the Secretary of the Treasury may al
any time apply the surplus money In treas.
ury not otherwise appropriated, OF so much
thereof as he may consider proper, TO the pur.
chase or redemption of United States bonds'
ProTded, That the bonds so purchased or re-
deemed shall constitute no part of the sinking
fund, but shall be Cancelled. - United States
Statutes at large, vol. 81, p. 457D
These laws all consist with each other;
they show one purpose, and that purpose Ia
to pay to the last dollar the debt OF the
United States. There i5rnot a word IN
either Of them which conflicts with word
in either Of the others. They make har-
monious and perfect whole.
The United States has never gone further
in It's pledges to It's creditors than it did 10
the law entitled "An act to strengthen the
public credit" passed March Is, 1869. The
first clause of that law reads as follows:
The faith OF the United States is solemnly
pledged to the payment in coin or its equiva.
lent of all the obligations Of the United State~
not bearing interest known as United States
notes, and of all the interest-bearing obliga-
tlons OF the United States, except where til,
law authorizing the issue Of any such obligt-
tion has expressly provided that the same may
be paid In lawful money or other currency
than gold and silver.
The remainder of this law is previously
quoted
It 1t an undisputed principle OF law that
all laws bearing upon the subject become
part of any contract, thus the sinking
fund clause OF the act Of 1862, and the re-.
dcmption clause OF the act of 1859, both
bearing upon the subject, became a part Of
he contract beticeen The United States ant
the purchasers and holders of It's bonds II
is also well settled that law cannot be re-
pealed by implication; that there must be
direct words to effect the repeal Of any
statute.
Thus wefind that the bonds Of the United
States are held subject to two con iitions-
first, that one per ccntum Of the entire sun
has to he paid in each fiscal year for the
sinking fund, and that in addition to this
one per centum the secretary must use the
interest on all previous accumulatious In
the sinking fund to purchase or pay addl-
tions to that fund; and second, that when
ever greenbacks can be sold at par for coin,
and bonds can be sold at a lower rate OF
interest than is being paid the Secretary
has the right to pay or refund the entire
debt.
There is not word in the statute books
from the beginning to the end OF them that
authorizes the administration to pay one
penny premium on any bond Of the United
States. 1t is hardly conceivable how any
one having in view the interests OF the peo-
pie, and not merely those OF the bond
holders, could suppose that the authority
to purchase or redeem, given by the refund
ing act of 1881, gave the authority to pay
premiums when the law authorized redemp.
tion.
The Secretary of the Treasury has the
right to purchase, as the Independent says
subject to the conditions imposed by law
and these conditions are that he must dc
whatever is best for the interests Of thG
United States; that is, redeem at The .fact
rdl'te, under the authority gicen him, or pur
chase i The bonds fall belo,U par.
Congress evidently gave discretion, al
stated, to redeem, which means to pay pa,
or purchase at or below that figure.
knew that II II gave the power to the Secre
tary to pay premium, that premium
would be fixed by negotiation, which
might indefinitely increase the debt, con
sequently Congress did not authorize th
Secretary to purchase at market rates, bu
only TO purchase or redeem, either process
not to exceed par. Any deviation frou
this is a construction not authorized b
law, against the people, and In the interes
Of the bondholder.
II the Independent had carefully consid
cred the laws on the subject it woul
hardly have said that the purchase @
bonds was the only way to prevent the az
cumulation Of the surplus and to put ou
that with which the administration has a
ready gorged the treasury, because 1t woul
not execute the laws. There is a pla!r
legal way, as we have shown, without RI
sorting to violation of law by paying
premium on bonds.
The Independent should not work In tn
interest Of Wall street or of Mammou, an
before attempting to comment on the law
of the United States, II should give ther
that close study is supposed to have give
to the book Of books which contains th
divine laws that come within the specia
domain of the Independent.